Refer to the following figure:

The graph shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MR T , and marginal cost.
-How should the firm allocate sales between the two markets?
A) 150 in each market
B) 100 in market 1, 175 in 2
C) 150 in market 1, 300 in 2
D) 112.5 in each market
E) 75 in market 1, 150 in 2

Question

Refer to the following figure:
  
The graph shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MR T , and marginal cost.
-How should the firm allocate sales between the two markets?
A) 150 in each market 
B) 100 in market 1, 175 in 2 
C) 150 in market 1, 300 in 2 
D) 112.5 in each market 
E) 75 in market 1, 150 in 2

Quizplus · Accepted Answer

The Answer of Refer to the following figure:
  
The graph shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MR T , and marginal cost.
-How should the firm allocate sales between the two markets?
A) 150 in each market 
B) 100 in market 1, 175 in 2 
C) 150 in market 1, 300 in 2 
D) 112.5 in each market 
E) 75 in market 1, 150 in 2

Refer to the Following Figure